Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sequentially but weakened compared to the same quarter last year. The sequential gain was driven by higher operating cash flow, while the year-over-year decline reflected a lower operating cash conversion.
- Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow increased from the prior quarter but was lower than the year-ago quarter, resulting in a free cash flow margin that improved sequentially but weakened year over year.
- Compared to the immediately preceding quarter, free cash flow and free cash flow margin were higher, driven by stronger operating cash flow with capital expenditure remaining stable. Compared to the same quarter one year earlier, free cash flow and free cash flow margin were lower, as operating cash flow declined despite higher revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$337.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$374.0M
Cash generated by operations before capital spending.
CapEx
$37.0M
Capital spending and related asset purchases.
FCF margin
9.1%
The share of revenue converted into free cash flow.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2024-12-31 | $3.7B | $690.0M | $39.0M | $651.0M | 17.7% |
| 2025-03-31 | $3.4B | $190.0M | $34.0M | $156.0M | 4.7% |
| 2025-06-30 | $3.6B | $215.0M | $36.0M | $179.0M | 5.0% |
| 2025-09-30 | $3.7B | $374.0M | $37.0M | $337.0M | 9.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 90.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$6.9B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sequential operating cash flow improvement
Operating cash flow increased substantially from the prior quarter, which was the primary factor behind the sequential rise in free cash flow. Capital expenditure remained nearly unchanged, allowing the improvement in operating cash flow to flow through to free cash flow.
This driver lifted free cash flow and free cash flow margin compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow increased from the prior quarter but was lower than the year-ago quarter, resulting in a free cash flow margin that improved sequentially but weakened year over year.
Compared to the immediately preceding quarter, free cash flow and free cash flow margin were higher, driven by stronger operating cash flow with capital expenditure remaining stable. Compared to the same quarter one year earlier, free cash flow and free cash flow margin were lower, as operating cash flow declined despite higher revenue.
Monitor the trajectory of operating cash flow relative to revenue, as it declined year over year despite revenue growth.